In this paper, we present an efficient video coding technique based on a va
riable block-sizing (VBS) technique and the wavelet transform. Quadtrees ar
e used for VBS segmentation on the wavelet-transformed frame which is decom
posed into pyramid multiresolution subbands. Feature areas are extracted du
ring the growth of the quadtree on each subband. Motion estimation/compensa
tion and vector quantization are performed on only the extracted feature ar
eas in the subband. Since the VBS technique is very effective in lowering o
verall coding rates, the proposed coder is designed for very low bit-rate v
ideo coding. Simulation results are presented at 14.4 kbits/s for videoconf
erencing sequences. To evaluate the performance of the proposed coder, comp
arisons are made with results obtained by the H.263 standard (C) 1998 SPIE
and IS&T. [S1017-9909(98)01003-4].